Competitive Market.
Explanation of Solution
A competitive market refers to a market where there are many buyers and many sellers of an identical product and each of whom has little or no impact on the market price. Market price in a competitive market is determined by the demand and supply of the product. However, there are other markets that are not perfectively competitive. For instance, in the
Concept Introduction:
Competitive Market: It refers to the market in which there are many buyers and many sellers of an identical product so that each has a negligible impact on the market price.
Want to see more full solutions like this?
Chapter 4 Solutions
Essentials of Economics (MindTap Course List)
- Define market supply in one sentence.arrow_forwardWhat does it mean and what does it entail if a market is more competitive?arrow_forwardGraph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium Quantityarrow_forward
- Draw a graph of a competitive market in equilibrium, and illustrate a decrease in Supply. Carefully label everything. Use the "E" labels to label the equilibrium points. As a result of the shift, what will happen to price and quantity? Carefully explain the mechanism that causes price to adjust after the shift, and illustrate it on your graph. Carefully label everything on the graph. Use the boxes below to type your answer. If you reach the line that divides the left side from the right side, start a new line in the next box down. If you do not use all of the boxes, put an "x" in the boxes you do not use.arrow_forwardWhich of the following describes a supply curve?arrow_forwardConsider the market for the wooden yoyo, if the price of wood increases. Change in demand? Change in supply? Change in market equilibrium price? Change in market equilibrium quantity?Graph?arrow_forward
- Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage LearningEssentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage LearningEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning